VietNamNet Bridge – There are more retailers leaving shopping
malls than the retailers setting up their new business there. The weak demand
and continued loss have forced them to give up the business.
Nguyen Thi Anh Hong, General
Director of Maximart, which is running two shopping malls on Cong Hoa road in
Tan Binh district and Ba Thang Hai Road in district 10, said a lot of retailers
who leased business premises at the shopping malls, have given back the premises,
planning to shift to other kinds of business.
The retailers have been
struggling for the last one year to survive the dark days. They hired fewer
workers and leased smaller retail premises to cut down expenses. However, the
retailers have run out of patience and decided to leave.
Phuong, a regular visitor to
the Saigon Square Shopping Mall, has noted that a lot of retailers here have
stopped their business. “Some days ago I went to the shopping mall and decided
to drop into a kiosk whose owner was an acquaintance of mine for the last five
years. However, I could not meet here there. After I called her, I realized
that the poor business performance has forced her to stop the business,” Phuong
said.
Hong said that Maximart, like
other infrastructure developers, has to retain clients by sharing the current
difficulties with them. Declining to give details about the leasing fee
discounts, Hong only said that it’s necessary to attend to every desire of
patrons.
The enterprises, which plan to
lease retail premises, have confirmed that they have been welcomed soliciting
by real estate developers. Nguyen Thanh Phong, General Director of Cao Toc, a
construction and interior decoration business, said that he has received a lot
of invitations from shopping malls to lease premises there with attractive
preferences.
For example, the developers
have offered the method of sharing profit based on the sales, while clients do
not have to pay fixed retail premises fees. Besides, they are not required to
obtain some certain turnover targets, the thing which was a compulsory
requirement in the past.
In the golden age of the
retail industry, when the retail premises for lease were limited, while the
purchasing power was high, shopping malls’ owners were very picky about
retailers. High grade shopping malls would only accept the retailers who
distribute well branded goods. Other shopping malls set up the minimum turnover
for retailers to ensure their images as luxurious shopping malls.
However, since it’s now more
difficult to find retailers to lease premises, shopping malls’ owners have to
lower their requirements. Phong also said that shopping malls’ owners now have
no other choice than accepting lower profits by offering lower leasing fees to
fill in the unoccupied premises.
Besides, according to Hong,
shopping malls try to help retailers attract more buyers by organizing sales
promotion campaigns, simply because shopping malls need to share difficulties
with retailers. The retailers’ business performance success would also bring
profits to shopping mall developers.
The representative of a
shopping mall in district 1 has revealed that sales promotion campaigns need to
be organized regularly to attract customers. It’s simply because people only
visit the shopping mall on the days of the campaigns, while it is very quiet on
normal days.
“In the past, we only ran
promotion programs on special holidays. But now we need to try every measures
to catch the attention of customers,” she said.
Dan tri has quoted a report by
CBRE, a real estate service provider, as saying that there were more retailers
leaving shopping malls than the retailers setting up their new business in
Hanoi in the second quarter of the year. Meanwhile, the area of the newly set
up retail kiosks tends to be smaller.
Of the total 130 kiosks which
shut down or opened recently at shopping malls in the second quarter, 60
percent of kiosks shut down.
The percentage of the kiosks
with average area of 20-100 square meters tends to increase, while the
percentage kiosks with smaller area of less than 20 square meters has
increased.
Source: TBKTSG
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